Depressed - stuck with my PRUDENT fixed rate mortgage!

puddy

yes i agree, when i first had a mortgage 12 years ago, it was 7.5% and that was quite good as i had a large deposit

1trainer1

im on a fixed rate of 6.39% which I took out in july 08...

i can see loads of people on lower rates but I was happy with my mortgage and to me it was a fair amount, its all about personal opinion and in my opinion I am doing well

adandem

I tood out a fix in September '08 which we're in the process of ditching......for another fixed rate. As it's only been running for a short time it was worth us doing. we're paying the same monthly amount but reduced what we'll owe by much more than the ERC's and had have reduced the term of our mortgage by 5 years. We hope to overpay as much as we can (but still live!).

I'm not one of life's risk takers and would rather know where I stand each month.

real1314

My 5 year tracker is due to end shortly, it was a +0.24% tracker. The best trackers now are +2.5%.
Compared to fixed, they look cheap, but that's only due to the current low BoE rate.
It only needs to rise to 1.5% to level with a 4% fixed, or 2.8% to leve with the OPs fix, 1.5 or even 2.8% is hardly a high rate. What if rates hit 6% in 2 or 3 years? Well, that tracker will be 8.5%. The fixed rates will of course be the same rate that you can afford.

fattony

Arghhhh!

They had a debate on raqdio 2 about this the other day, people who did not want to take the risk of a tracker mortgage went for a fixed rate, this was probably due to them wanting the security of know how much their mortgage would be each month and didnt want to take the risk.

People who went with the tracker were prepared to take the risk they their payments could go up each month, we all make the decisions that are best for us and if fixing was the right deal for you then you should still be happy knowing you have the security of a fixed payment, if you wern't prepared to take the gamble with a tracker then you dont get the cookie.

If in 6 months time the interest rate went to 8% every complaining about their 5.5% fix would be jumping for joy, you cant have it both ways.

marnstars

Guys and Gals

Thanks for the advice - it does remind me why I got the mortgage we have. It does provide certainty!

Maybe I'd like the best of all worlds. You can guarantee, when I come out of this fixed rates - I'll still be Mr Prudent.

:beer: